Relational Investors sues Sovereign on removal of directors

KatherineHunt

SAN FRANCISCO (MarketWatch) -- Relational Investors LLC said after the closing bell on Tuesday it has filed a counterclaim against Sovereign Bancorp Inc.
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requesting a determination that Sovereign shareholders have the right to remove the board without cause under the company's articles, bylaws and Pennsylvania law. Relational's counterclaim also requests that, in the event Sovereign is allowed to take this right away from its shareholders, the court vacate the results of Sovereign's 2005 election of directors. Last week, Sovereign asked a federal court to declare Relational's bid to oust its board to be without cause. San Diego-based Relational owns an 8% stake in Sovereign. The investment firm was thwarted last month when the New York Stock Exchange rejected its request to force a shareholder vote on Sovereign's sale of a stake to Spain's Banco Santander Central Hispano SA
STD, +0.29%
Sovereign is using the proceeds from the sale to buy Independence Community Bancorp
icbc

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